NFP: catching up effect for November driven by the service sector - Danske Bank

Analysts from Danske Bank, expect to see a catching up effect for non-farm payrolls in November. They expect an increase of 195K in NFP driven mainly by the service sector.

Key Quotes: 

“In the US, the jobs report for November is due for release on Friday. Several indicators (particularly PMI employment index) point towards a solid jobs report although it delivered several figures below what could be expected based on other indicators this year.”

“We expect a catching up effect for November driven by the service sector. Hence, we estimate non-farm payrolls increased 195,000 in November with services the main contributor. We estimate average hourly earnings increased in line with trend of 0.2% m/m (2.6% y/y vs. 2.4% y/y in October) and an unchanged  nemployment rate. Besides the jobs report on Friday, there are no other market movers on the agenda in the coming week.”